Question

How much must be deposited today into the following account in order to have a $105,000 college fund in 13 years? Assume no additional deposits are made. An account with annual compounding and an APR of 5.7% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)

Answer 1

Here we have been given future value and we have to find have to find how much we need to deposit today that means how much should be the present value, which can be calculated by following formula:

Present value = Future value/(1+r)ⁿ

where r = rate of return ( annual)

n = No. Of years

Present value = 105000/(1.057)¹³

=51075.72$

that means if you want 105000 after 13 years you have to deposited 51075.72$ Today.

Answer 2

How much must be deposited today into the following account in order to have a $115,000 college fund in 16 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.09% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)

Answer 3

How much must be deposited today into the following account in order to have a $115,000 college fund in 16 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.09% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)